Abu dhabi: The Dubai Financial Services Authority (DFSA): has imposed a fine of US$139,722 (AED513,129) on Wael Abdelmohsen Abdellatif Mohamed Emara (Mr Mohsen) for misleading and deceptive conduct. The DFSA, the independent banking, financial services, and markets regulator of Dubai International Financial Centre (DIFC), took this action to uphold the integrity of financial operations within the Centre.
According to Emirates News Agency, the fine was reduced from US$285,149 (AED1,047,209) as Mr Mohsen agreed to settle with the DFSA. This reduction also came after the DFSA considered Mr Mohsen's request for a reduction of the fine on the grounds of financial hardship.
In addition to the financial penalty, the DFSA has prohibited Mr Mohsen from holding office or being an employee of a DFSA Authorised Firm. He is also restricted from performing any function in connection with the provision of financial services in or from Dubai International Financial Centre (DIFC). Mr Mohsen, who was a reinsurance broker, held a senior role at Ed Broking (MENA) Limited (the Firm) and was responsible for assisting cedant insurers in placing risks with reinsurance companies.
The DFSA found that Mr Mohsen misled and deceived cedant insurers and reinsurers over a period of more than three years. The misconduct involved quoting higher premiums to cedant insurers and lower premiums to reinsurers for the same placements, causing the difference to be earned as additional brokerage by the Firm. He advised reinsurers that certain deductions were required from the premiums; however, the amounts deducted were instead retained by the Firm as brokerage. Additionally, he provided one of the Firm's Clients with reinsurance documents manipulated to show higher premiums or lower brokerage and deductions.
The DFSA has further determined that Mr Mohsen lacked integrity and is not fit and proper to be involved in the provision of financial services in or from the DIFC. Alan Linning, Managing Director of Enforcement at the DFSA, emphasized the expectation for employees of Authorised Firms to observe the highest standards of integrity in carrying out financial services. Linning stated that Mr Mohsen's actions failed to meet these standards, and the penalties reflect the seriousness of his misconduct, serving as a warning to deter similar conduct.
The DFSA remains committed to developing, administering, and enforcing world-class regulations of financial services within DIFC. As part of its strategy and ongoing mission, the Authority will continue to implement stringent enforcement measures and provide clear regulatory guidance to ensure that all entities operating within the Centre adhere to the highest standards of regulation and ethical conduct.